IMF Raises Japan GDP Growth to 1.9%; warns on deflation

In its World Economic Outlook, the IMF raised its forecast for Japan's growth this year to 1.9 percent from 1.7 percent in January, and for Asia's developing economies to 8.7 percent from 8.4 percent.

It maintained its forecast for China at a 10 percent expansion and said the withdrawal of exceptional monetary stimulus put in place in 2009 would minimize the risks from excessively loose credit conditions.

Japan, on the other hand, may need to ease its already very-loose monetary policy further, the IMF said, warning of the potential damage deflation can do to its fragile economic recovery.

http://in.reuters.com/article/businessNews/idINIndia-47887520100421